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Digging through the Fed Z1 “Financial Accounts” (formerly “Flow of Funds”) – Bears Chat

Since I have no social life, I decided to waste some of my rapidly-diminishing time pouring over the latest Federal Reserve Z1 “Financial Accounts” statement. The Fed has put some of their idle Ph.D. economists to work and has slightly snazzed up this otherwise boring and mundane tome, even changing the name from the old “Flow of Funds” to the present title.

However, they still steadfastly refuse to actually put the data into graph form (because doing so would reveal the hockey-stick growth of debt!!!), so wading through the information is a cumbersome chore.

But wade through I did, and I have uncovered a few nuggets in the latest release, found here:

http://www.federalreserve.gov/Releases/Z1/Current/

Let’s cut right to the chase and get to the heart of one of the most important issues: the balance sheet of the sheeple. And right there, on page 123 of the PDF, it is revealed why the Fed Pigmen and Uncle Thug went into “Panic Mode” in 1008, nationalizing/stimulating/monetizing everything in site to offset “The Great Disintegration”. Because the lambs are “all in” on McMansions and stocks.

To wit:

1. The sheep have EIGHTEEN TRILLION FIATSCOS of so-called “housing wealth” tied up in their heavily-mortgaged McMansions, under the category of “Real Estate”.

2. However, this number is a pittance when compared to the amount of”Financial Assets” the ewes own, now topping a whopping FIFTY-SEVEN TRILLION FIATSCOS!!!

3. And SEVENTEEN TRILLION FIATSCOS of those assets are tied up in stocks/mutual funds.

4. And nearly SIX-TRILLION FIATSCOS in bonds.

(Spock Conclusion): There is plenty of other interesting information in the report, including that the sheep have pulled back on borrowing (but still owe THIRTEEN TRILLION fiatscos of total debt), and that Uncle Thug has continued his borrowing spree (no surprise there), but I’ll just end this missive at this point and allow you to digest these gargantuan numbers.

Perhaps now everyone can fully appreciate why our AlphaPig masters flooded the world with stimulus and monetization madness: because the lambs demanded it.

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